Eli Lilly and Company (LLY)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,040,500 | 7,138,000 | 6,495,300 | 7,589,500 | 9,347,000 |
| Long-term debt | US$ in thousands | 18,320,800 | 14,737,500 | 15,346,400 | 16,586,600 | 13,817,900 |
| Total stockholders’ equity | US$ in thousands | 10,771,900 | 10,649,800 | 8,979,200 | 5,641,600 | 2,606,900 |
| Return on total capital | 24.20% | 28.12% | 26.70% | 34.14% | 56.91% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,040,500K ÷ ($18,320,800K + $10,771,900K)
= 24.20%
Lilly(Eli) & Co's return on total capital has shown a gradual decline over the past five years, from 32.30% in 2019 to 28.68% in 2023. This indicates that the company's ability to generate profits from its total capital employed has weakened over time. The decreasing trend may be attributed to various factors such as changes in the company's capital structure, operational efficiency, or overall profitability. It is important for investors and stakeholders to closely monitor this metric to assess the company's performance and financial health.
Peer comparison
Dec 31, 2023